Morgan Stanley analyst Toni Kaplan said her sum-of-the-parts valuation for ADT Inc. is $11 per share, which leads her to believe that the current share price near $7 implies either that the market is assigning a zero value to ADT's traditional business or is undervaluing ADT's faster-growing, higher-ARPU Pulse business. While ADT's traditional residential business is facing competition from technology from the likes of Amazon (AMZN) and Google (GOOGL) and subscribers have been declining, its commercial business is stable and growing, Kaplan said. Even applying a discounted multiple to the traditional business that is in-line with secularly challenged retail businesses still results in upside for ADT, said the analyst, who keeps an Overweight rating and $10 price target on the stock.